Case Analysis:

“Plugging In” the Consumer: The Adoption

of Electrically Powered Vehicles in the U.S
In
Consumer Behaviour
 1)Based on the trade-offs to be made, how would customers
choose a PHEV, EV, or HEV?

Plug-in hybrid electric vehicles (PHEVs) are like conventional

hybrids in that they have both an electric motor and an internal
combustion engine, except PHEV batteries can be charged by plugging
into an outlet. Reasons to choose a PHEV is that they can substitute
electricity from the grid for gasoline. Use of Li-ion battery instead of Ni-
cad and NiMH which allowed greater range and speedier recharge.
PHEV battery can be charged but plugging into an electric outlet. PHEV
charged very low in operations as electricity is cheaper than gasoline
for example GM Chevy PHEV called the Volt would cost less than
purchasing a cup of coffee which is $0.02 per mile and travel up to 40
miles on a single charge. The only concern is the day to day burden of
operating a plug-in car.
 
Electric Vehicles are cars powered solely by electricity with zero tailpipe
emissions. The EV is powered by LI-ion battery which can be changed
depending on many factors like battery type available power voltage.
They can be charged in less than 4 hours like in the case of Roaster by
Tesla and can go up to 240 miles in a single charge. Government
Incentives can be another factor to buy EV as they are being at low
prices. Environmentalists find motivation in buying EV as they these cars
are the path for lowering C02 emissions and the large portion of the
money that will be saved from importing gasoline will be used in R&D for
emerging renewable sources of energy.

Conventional hybrid vehicles are where modern electrification

started.  They use both a full-size internal combustion engine, along with
an electric motor and battery pack. With the increase in the Gasoline
prices in 2000 from $0.90 and $1.50 to $4.12 in 2008, HEV cars were less
expensive than the SUV’s and other gasoline used. Third generation
HEVs provided better performance with 50 miles per gallon.  Also,
companies are coming with better investment in the natural world to
motivate the audience to use so buying an HEV would raise customer
satisfaction for their contribution toward change.
 
 
Question 2: -What marketing actions would you recommend to
firms to maximize consumer uptake?

1. Customers love experiments as part of the learning process.

Everyone wishes to drive an EV to know its benefits. Thus, it’s wise
to promote numerous test-drive sessions.  Driving an EV allows you
to take advantage of energy regeneration and use one pedal to
 accelerate or stop the car. The marketing team should explain the
real benefits of using an EV effectively. Rather than giving general
information about the EVs, offer specific details about these
products.

2. Design tariffs and demand response programs: companies

need to begin preparing incentive structures to manage residential
chargers, such as time-of-use EV tariffs that can shift customer
charging behavior to alleviate local feeder stress. For example,
advanced use of tariffs and developments in-car technology from
New York utility Con Edison enables EV drivers to charge anywhere
in the Con Edison service territory, be identified and earn rewards
for charging outside of peak hours.

3. Use of social media platforms and blogger outreach to get in

front of a target audience easily. Instead of focusing just on-brand
content, the marketers can create relevant videos explaining about
the product. They can also record videos while driving these
vehicles in recognizable roads and upload them on social media
platforms. Such genuine and professional marketing on social media
platforms will make your target audience trust your brand.

4. Put more emphasis on novelty

All vehicles, whether gasoline or electric, offer varied driving
experience and have different features. However, they are very
similar, and most users don’t notice much difference between
different vehicles even after changing cars. Electric Vehicles are
refreshingly new. They offer a unique driving experience, new
sensations, and more. While all innovations have downsides,
novelty is a great selling argument is Tesla.
3) Do you see a bright future for the PHEVs? Why or why not?

Yes, we think that the PHEVs are set to have a splendid future in front of
them.

PHEVs or Plug-in Hybrid Electric Vehicles are an up-gradation to the

HEVs or the Hybrid Electric Vehicles. It tends to be alluded to as another
variation of the HEV. It utilizes a similar innovation as an HEV and runs
on both power and gas. It utilized a lithium-particle (Li-Ion)
battery, which could be charged by connecting to an electric outlet. It
has a greater range and faster recharging rate and could be charged
by plugging at electric outlets.

Various reasons we think PHEVs are going to be a success:

 Before we dig into the different choices accessible for an electric

vehicle, we need to think about the master plan, i.e. 'electric
versatility'. In the event that electric portability has a development
pattern, later on, it will show itself in the market for PHEVs also.
Dominant part Americans have just acknowledged that the move
from ICE vehicles is unavoidable and electric versatility is the new
future. The Obama organization had defined the objective of having
one million PHEVs and EVs out and about by 2015.
Comparative government activities and bolster will enable electric
portability to develop at a quicker pace.

 The Li-Ion battery utilized in the PHEVs permits a more prominent

range and speedier recharge. Additionally, they can run solely on
power until the battery runs out and afterward change to fuel. This
implies a progressively sustainable methodology, contrasted with
the past frameworks. It also helps in overcoming the
dependence just on electricity in EVs as there can be instances
of the battery being drained out completely in the middle of a trip
with no nearby electric charging station.
  Another motivation behind why PHEVs would succeed is the comfort
when it came to charging the vehicle. Most models utilized a three-
prong plug and can be charged utilizing a 110-volt line or a 220-volt
line. The per-kilowatt-hour charge ranger from $0.04 to $0.33,
making it a very cheap source of energy for cars. These line
frameworks are as of now set up in most American families, and
won't require any mandatory spend on the foundation necessity.
More current models, for example, the Volt, would likewise be
amazingly practical to run and work as it would just cost $0.02 per
mile and would run for 40 miles in a single charge.

 As per the study led to comprehend customers' probability of

purchasing a PHEV, 42% of respondents asserted that there was
a chance they would buy a PHEV later on. In any case, this was with
the supposition that savings ought to be around 25% on a PHEV.
With the genuine savings tuning to about 75%, a majority of the
respondents would turn for buying a PHEV.

 Lastly, the PHEV was an ideal fit between the ICE loyalists, just as
those for electric versatility. It would take care of the wariness
around EVs, in the event of a drained battery; as the PHEV had gas
as another wellspring of intensity. Additionally, for the ICE
supporters who had been excessively familiar with the innovation
and for whom this was a significant move, the nearness of the
fuel-controlled framework in the PHEV would give them certain
confirmation and they would be less hesitant to evaluate this
innovation.

4) Based on the case facts about the trends about American

customers, how do you think consumers in India will evolve their
purchasing criteria for EVs?

The US market saw a decent accomplishment in the deals in hybrid

vehicle fragment, for example, PHEVs. But American buyers were
suspicious about the acquisition of EVs as they were worried about the
significant distance travel which would expect them to revive at explicit
stations.
However, with the oil costs continually rising and worries about the
world's limited petroleum products very nearly elimination, the countries
ought to gradually move from the utilization of traditional vehicles to the
electric vehicles. Additionally, with the contamination levels
expanding broadly y-o-y without any indications of decline and the
issue of a dangerous atmospheric deviation being a significant worry over
the world, a change to EVs is something which is the need of the hour.

With the end goal for India to develop their buying standards for EVs, the
accompanying focuses ought to be contemplated:

 Since the vehicles are costly, the legislature ought to provide

subsidies to customers purchasing EVs as was found in five
Chinese urban areas where the offer of BYD E6 expanded definitely
with the endowments.

 Affordable charging stations ought to be accessible at different

force levels and in different plans, not only three prong plugs. This
is conceivable if lithium battery creation ought to be set up inside
the nation. There ought to likewise be an organization between the
State level and the focal level government to guarantee that it is
executed effectively.

 The government should itself promote the broad utilization of EVs

and discussion about the constructive outcomes it would bring to
the earth as the EVs will produce much less carbon-emissions as
India has the 3rd highest carbon-emissions in the world.

 The government can give rebates on tax to the early

purchasers; for example, 0% tax on the interest paid up to Rs.2
lakhs on the credits taken to buy EVs.

 Indirect Taxes, somewhat, ought to likewise be cut on the

acquisition of EVs. Electric versatility and local vehicle
assembling are the need which need to be fulfilled by the
administration.
 The centre ought to be to fuse EVs in both commercial vehicles just
as business vehicles.

 Adequate interests in the foundation should happen by building up a

system of EV stations at a reasonable value, which ought to be
two dimensional such that it should both go about as a reviving spot
just as battery switch station, at the interstates with the goal that
individuals can travel significant distances bother free. Aside from
that, EV stations ought to likewise be created close to shopping
centres, city structures, and so on.

 EVs ought to be continually developed and immense speculations

ought to be finished by the organization in the R&D; i.e.; on
consistent advancement in order to build the miles run per charge
and furthermore to diminish the charging time.

 The government should force tremendous duties on the cost of

oil, just in level 1 metro urban areas, with the goal that individuals
are disheartened to buy ICE motor vehicles.

 Just like what Better Place did in the US to alleviate the client
worry about the higher in advance expense of EVs with its
membership based model, where Better Place held the responsibility
for batteries to lessen the expense of the vehicle to customers,
the equivalent can be consolidated in India to build the deals of the
EVs.